Italian property market
In today’s Italian property market, it looks like it’s the right time to buy a house. In particular, residential property sales have been high in demand over the last year something. Learn more below.
Why should you buy an Italian house now?
House prices in Italy have been steadily falling since 2010, by as much as 50 percent in some cases. However, the sale of Italian properties is maintaining its strong growth for the third consecutive year. This is what was stated by a real estate portal named Idealista.it.
Although the euro zone crisis and some austerity measures like higher property taxes have affected the Italian real estate landscape over the last years, the slump is now going to finish.
Home sales in Italy are indeed maintaining their strong growth for the third consecutive year. According to Agenzia delle Entrate, the residential property sales surged by 18.9% with about 528,865 residential properties units sold.
New tax benefits to boost the Italian property market
Over the last years, new tax measures have been launched to boost the Italian property market. In particular, the Italian Government has set out the following measures:
- TASI and IMU tax for principal homes (except luxury homes and castles) abolished.
- 25% discount on the IMU tax for houses under an “agreed rental”(canone concordato) contract. A contract with a minimum period of 3 years plus two years of automatic renewal, which also includes compliance to the local authorities’ minimum and maximum rents.
- Flat rate of 4 per thousand and a €200-worth standard deduction on IMU tax for luxury homes and castles.
- IMU exemption for mountain land.
Pursuant to Italy’s 2017 Budget Law, individuals may benefit from transferring their tax residence in Italy. To this end, they got an option to apply for a flat annual tax payment of €100,000 (and an additional €25,000 for each family member) as a substitute tax on foreign income. This tax regime that appeals eligible for “Resident Non-Domiciled” individuals. If successful, it may boost top-end property prices.
If you look for farms for sale in Italy or deal with an Italian property purchase, ask our lawyers any questions. We are always happy to help you.